German Regulator Questions Bank Over Brothel Loan
German financial regulator BaFin has questioned Volksbank Koeln Bonn regarding its 2021 financing of the Pascha brothel. The bank launched an internal investigation into potential kickbacks involving a board member who denies any wrongdoing.
Germany's financial watchdog has questioned Germany-based Volksbank Koeln Bonn over a 2021 loan used by a China investor to buy a major brothel, a person with direct knowledge said on a Tuesday morning. The inquiry focuses on whether a bank board member personally benefited from the financing of the Pascha establishment in Cologne. The probe puts pressure on the cooperative lending sector in Europe's largest economy.
